The Kentucky Lottery Corp. (KLC) and Scientific Games Corporation officials have cut the ribbon on a new facility to manage the lottery’s Scratch-off tickets across the Commonwealth.
This signifies the beginning of a full product category management program for instant games in the state, the first such change in the Kentucky Lottery’s 29-year history.

The new program, called Scientific Games Enhanced Partnership (SGEP), covers every aspect of the Kentucky Lottery’s Scratch-off tickets, including game development and portfolio management, advanced logistics for warehousing and distribution, and lottery retailer optimization. The Kentucky Lottery’s instant game product line last year realized $613 million in sales.

Scientific Games has constructed a state-of-the-art 41,000-square-foot warehouse in Louisville to serve as its hub in the Commonwealth. Scratch-off tickets are shipped from the new location, and all KLC retailer ticket orders are taken and processed here as well. While retailers are still able to call and request certain games, Scientific Games’ predictive ordering technology included in the new program means retailers will receive inventory based on their individual players’ game demand.

“For any consumer product business, having the appropriate levels of inventory in stores is crucial,” said Kentucky Lottery President and CEO Tom Delacenserie. “This proven system of predicting exactly what individual retailers need and ensuring their supply meets consumer demands will absolutely help us grow sales of this essential product.”

“We are honored that the Kentucky Lottery has trusted the full category management of its Scratch-off products to Scientific Games,” said Jim Kennedy, Group Chief Executive, Lottery for Scientific Games. “This program has been refined over the last several decades, in part by developing advanced technologies, to help lotteries create more growth within the product category and responsibly grow proceeds to their good causes, like education in the state of Kentucky.”

The lottery’s bottom line will be helped not only by these increased sales, but also through the efficiencies realized through the SGEP program. It is used by more than 20 lotteries globally, including some of the top performing lotteries in the world. “Any savings and additional sales we can realize are vital to our mission,” said Delacenserie.